A dozen investment zones will be announced tomorrow as part of an effort to boost local growth and level up left behind areas.

In tomorrow's Budget, chancellor Jeremy Hunt is expected to confirm plans to start talks with places to host the new zones.

Eight places in England have already been shortlisted and the Government expects to agree plans by the end of the year.

Each zone will be clustered around a research institution such as a university.

Mr Hunt said: ‘True levelling up must be about local wealth creation and local decision-making to unblock obstacles to regeneration.'

Each zone will be backed by £80m, which will go towards tax relief, improving skills, providing specialist business support, improving the planning system or local infrastructure.

Chief executive of the Northern Powerhouse Partnership, Henri Murison, said: ‘This is a marked improvement on the investment zone policy, one which recognises the latent potential in these regions and gives devolved powers more ownership over their future destiny.

‘By avoiding a bidding-style competition and going straight to combined authorities, the Government has avoided repeating previous mistakes.'

The chancellor is also expected to provide investment for the rollout of levelling up partnerships across England, under which councils, MPs, and business and civic leaders will work together to identify cross-Government interventions to unblock obstacles to regeneration.

Levelling up secretary Michael Gove said: ‘Levelling up means backing local growth across the UK, driving innovation to attract investment and putting power into the hands of local communities so they can reach their full potential.

'Our new investment zones and levelling up partnerships will deliver more jobs, better services and more opportunities.'